(Jun 6 Bloomberg) Asian stocks rose for a third day and South Korea's won strengthened after comments by Federal Reserve Chair Janet Yellen quelled speculation U.S. interest rates will be raised in July. Oil retreated from a 10-month high as zinc dropped for the first time in nine days.
The MSCI Asia Pacific Index was headed for its strongest close since April, led by gains in energy companies and raw-materials producers. Futures on the S&P 500 were little changed, after the benchmark rose to its highest since November. The Bloomberg Commodity Index declined, after entering a bull market in the last session. Gold fell from a two-week high, dropping in tandem with industrial metals. The won jumped by the most since March as trading resumed following a holiday in Seoul, while the Japanese yen weakened.
Yellen said Monday she expects to raise interest rates only gradually and held off from specifying any time frame, a shift from her May 27 stance that a move was probable "in the coming months." The odds of a rate hike by July dropped to 22 percent in the futures market, after halving to 27 percent on Friday as a report showed U.S. jobs growth in May was the weakest in almost six years. While the prospect of borrowing costs staying lower for longer is giving a lift to stocks and emerging market currencies, gains may prove short-lived should the global economy remains subdued.
Click on the link below to see the full story from Bloomberg: (by James Regan & Adam Haigh)